Network Marketing (MLM) Good or Bad? Know a complete reality

Network marketing good or bad-Thumnail

Network marketing is a business that an individual can do irrespective of gender or age. Anyone can start a network marketing business with minimal investment. But before jumping to a conclusion of whether it is good or bad, let’s know about network marketing.

What is Network Marketing?

According to Investopedia ” Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home”.

Network marketing is known by multiple names like MLM (Multi-level Marketing), Direct Selling, Cellular marketing, consumer direct marketing, Pyramid scheme, and much more.

How Does Network Marketing Works?


Network marketing companies create a tier of salespersons called as distributors. These distributors encourage different people to become distributors of his/her company through their referrals.

After recruiting people to the company they also do the same thing i.e recruiting other people for their company and this a pyramid and chain forms. The top level of the pyramid consistently earns a good amount of money compared to the middle or bottom distributor.

When this distributor sells or convinces other people to purchase their company’s product they get some amount of commission. This commission varies from company to company & designation of the distributor.

Also Read: Top Network marketing companies in India

Network Marketing Good or Bad?

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Let’s talk about whether this business is good or bad. or is it really worth it? or Is it good for the carrier?

Firstly network marketing is not a new concept that we are talking about. In 1934, a Vitamin company from California launch this concept of multi-level marketing. There are thousands of companies that are using this concept to market their product. As we know, network marketing is one of the most cost-effective marketing strategies to sell products.

There are many people who made their career through network marketing like:

Omar Salazar, Ivan and monika tapia, sergio penunuri, sonu sharma from India and much more.

This business has given an opportunity to many people who are searching to start their business with low investment.

But the question is why so much negativity for network marketing?

This negativity comes when our expectation does not meet reality. Let me explain in a more clear way. When a distributor starts his MLM business he gets lots of promises like

  • You will earn a lot of money in quick time
  • You want to do nothing
  • Just focus on recruiting
  • You can purchase XYZ car in the upcoming month

and much more.

But my question is where is strategy?

Also, nowadays 99% of network marketers are in doing business with old-school methods like cold calling, convincing people, mate strangers in cafes, etc.

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This method works but nowadays people ignore the cold call or talk to strangers. Because there are lots of people like insurance agents, MLM distributors, and telemarketers who also talk to them regularly. This makes people more frustrated to talk to a stranger which results in an overly low conversion rate.

A low conversion rate and low joining rate give a lot of frustration to new distributors, which drives them to quit this business and spread negativity in the market.

So the question is network marketing good or not?

My answer depends on your strategy for this business. The best strategy to do this business is leveraging social media marketing platforms and digital tools.

Doing network marketing business digitally helps you to build your personal brands, which helps you to recruit more people automatically without convincing anybody.

Here is a mini course for you to know more about How you can build a network marketing business 100% Online.

Frequently Asked Questions (FAQ):

Is Network Marketing Good For Students?

Yes, Network marketing is a great playground for students to earn valuable skills like leadership, management, public speaking, sales, marketing as well as digital marketing. If a student wants to start their own business with low investment then network marketing is a great option.

Is Network Marketing Good For Career?

 If you are looking for entrepreneurial freedom and financial stability, network marketing is one of the best career choices out there

Network Marketing Safe or Not?

Watch the below video in Hindi to understand about is network marketing/MLM is safe or not.

Also Read:

Best network marketing course

How to join network marketing company


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